Cluster Buying Trend Emerges at Fortis Amidst Strong Financial Performance

Fortis, Inc. (FTS:CA) is a holding company involved in the electric and gas utility industry. Its operations are divided into the Regulated Utilities and Non-Regulated segments. The Non-Regulated segment primarily deals with energy infrastructure and corporate affairs. Established in 1885, the company is listed on the Toronto Stock Exchange with a market capitalization close to CAD 25.702 billion and is headquartered in St. John's, Canada.

Insiders Bolster Holdings Position

Between February 26 and 27, several insiders demonstrated confidence in their company's stock by purchasing additional shares. On February 26, Chief Legal Officer James R. Reid, Director Donald R. Marchand, and Independent Director Julie A. Dobson bought 1,150, 1,500, and 1,551 shares respectively at an average price of CAD 52.394 per share. 

The following day, on February 27, President/CEO David Gerald Hutchens acquired 25,000 shares at CAD 52.59 per share.

When considering all these transactions collectively, the insiders invested a total amount exceeding CAD 1.53 million.

Institutional Investors Front

In the latter half of 2023, financial institutions demonstrated confidence in the firm. Notably, CIBC World Markets, Inc. added 417,053 shares to its position, BMO Asset Management Corp. increased by 377,608 shares, and Cidel Asset Management, Inc. acquired 1,644,620 shares.

Similarly, mutual funds showed confidence, with Vanguard Total International Stock Index Fund increasing its position by 6,560,092 shares and Beutel Goodman Canadian Equity Fund purchasing 3,236,510 shares.

A Solid Financial Position

On the financial front, The utility firm recently revealed its financial results for Q4 and the full year of 2023, indicating substantial growth and accomplishments. 

Fortis reported strong performance, with annual net earnings of $1.5 billion, or $3.10 per common share, reflecting the effective execution of its regulated growth strategy, a significant increase from 2022. Capital investments for the year totaled $4.3 billion, aimed at improving reliability, modernizing the grid, and implementing cleaner energy solutions. 

Regarding the robust results presented by the firm and the insider buying pattern, the cluster buying by insiders can be decrypted as a potential indicator for a bullish near future.